]]>By: Emily @ evolvingPFhttp://www.getrichslowly.org/blog/2013/10/20/reader-stories-saved-one-years-salary-roth-ira-in-grad-school/comment-page-1/#comment-3466675
Emily @ evolvingPFWed, 23 Oct 2013 06:01:19 +0000http://www.getrichslowly.org/blog/?p=166243#comment-3466675Great job! That is so smart to live off your husband's income and bank your stipend. I have also been thinking that saving so much for retirement right now will enable us to cut back later without underfunding (or at least give us the option), like you have. In our case, that might be due to daycare or saving for a house downpayment.Great job! That is so smart to live off your husband’s income and bank your stipend. I have also been thinking that saving so much for retirement right now will enable us to cut back later without underfunding (or at least give us the option), like you have. In our case, that might be due to daycare or saving for a house downpayment.

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]]>By: Jillhttp://www.getrichslowly.org/blog/2013/10/20/reader-stories-saved-one-years-salary-roth-ira-in-grad-school/comment-page-1/#comment-3465909
JillTue, 22 Oct 2013 20:50:46 +0000http://www.getrichslowly.org/blog/?p=166243#comment-3465909Your story inspired me to make a more conscious effort when it comes to sticking with my budget! Good job!Your story inspired me to make a more conscious effort when it comes to sticking with my budget! Good job!

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]]>By: Courtney H.http://www.getrichslowly.org/blog/2013/10/20/reader-stories-saved-one-years-salary-roth-ira-in-grad-school/comment-page-1/#comment-3465729
Courtney H.Tue, 22 Oct 2013 18:12:20 +0000http://www.getrichslowly.org/blog/?p=166243#comment-3465729Congrats! My husband and I did a similar thing when I was in grad school. He had a regular job but I only got a $15k/year stipend with my Masters program. We fully funded our ROTHs with my stipend and lived off of his income. I wanted to save as much as possible in our retirement accounts while we were young and before we had large daycare expenses.
Now I am only 28 and my husband is 30 and we have over $115k in our ROTHs and 401ks combined. It is nice to have that cushion there since now that we have two kids in daycare ($1800/month ouch), we only contribute 10% of our income to retirement.Congrats! My husband and I did a similar thing when I was in grad school. He had a regular job but I only got a $15k/year stipend with my Masters program. We fully funded our ROTHs with my stipend and lived off of his income. I wanted to save as much as possible in our retirement accounts while we were young and before we had large daycare expenses.

Now I am only 28 and my husband is 30 and we have over $115k in our ROTHs and 401ks combined. It is nice to have that cushion there since now that we have two kids in daycare ($1800/month ouch), we only contribute 10% of our income to retirement.

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]]>By: Emily @ evolvingPFhttp://www.getrichslowly.org/blog/2013/10/20/reader-stories-saved-one-years-salary-roth-ira-in-grad-school/comment-page-1/#comment-3465693
Emily @ evolvingPFTue, 22 Oct 2013 17:50:04 +0000http://www.getrichslowly.org/blog/?p=166243#comment-3465693Sure, feel free to link to my blog! I love to connect with other grad students who are interested in PF, particularly bloggers.
I'll just warn you that my perfect breakfast includes a lot of vegetables, so an egg casserole seemed like a good choice (before this experiment, I'd been scrambling eggs and sauteeing vegetables or making vegetable omelets). The recipe I've been playing with the last few weeks is http://www.cookincanuck.com/2012/10/baked-egg-breakfast-casserole-with-mushrooms-spinach-salsa-recipe/. My variation has 3 eggs, 3 oz of mushrooms, and 1.25 cups of spinach per serving. I have also substituted feta cheese for the salsa and I like it both ways. I make 4 servings in a casserole dish on Sunday night and eat it for breakfast Monday through Thursday. It's really cut down on my time to get out the door in the mornings.Sure, feel free to link to my blog! I love to connect with other grad students who are interested in PF, particularly bloggers.

I’ll just warn you that my perfect breakfast includes a lot of vegetables, so an egg casserole seemed like a good choice (before this experiment, I’d been scrambling eggs and sauteeing vegetables or making vegetable omelets). The recipe I’ve been playing with the last few weeks is http://www.cookincanuck.com/2012/10/baked-egg-breakfast-casserole-with-mushrooms-spinach-salsa-recipe/. My variation has 3 eggs, 3 oz of mushrooms, and 1.25 cups of spinach per serving. I have also substituted feta cheese for the salsa and I like it both ways. I make 4 servings in a casserole dish on Sunday night and eat it for breakfast Monday through Thursday. It’s really cut down on my time to get out the door in the mornings.

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]]>By: Gingerhttp://www.getrichslowly.org/blog/2013/10/20/reader-stories-saved-one-years-salary-roth-ira-in-grad-school/comment-page-1/#comment-3465687
GingerTue, 22 Oct 2013 17:41:05 +0000http://www.getrichslowly.org/blog/?p=166243#comment-3465687I want an example of some of the recipes you are batch cooking for breakfast. Also can I link to your blog from mine? I'm a master's student and my husband is a PhD student, so I am thinking your blog may be very useful to read.I want an example of some of the recipes you are batch cooking for breakfast. Also can I link to your blog from mine? I’m a master’s student and my husband is a PhD student, so I am thinking your blog may be very useful to read.

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]]>By: Emily @ evolvingPFhttp://www.getrichslowly.org/blog/2013/10/20/reader-stories-saved-one-years-salary-roth-ira-in-grad-school/comment-page-1/#comment-3465677
Emily @ evolvingPFTue, 22 Oct 2013 17:34:28 +0000http://www.getrichslowly.org/blog/?p=166243#comment-3465677I enjoy the time savings of batch cooking so much that I'm not sure I'll give it up even when I'm home for dinner more often! Congrats on your real job!I enjoy the time savings of batch cooking so much that I’m not sure I’ll give it up even when I’m home for dinner more often! Congrats on your real job!

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]]>By: Emily @ evolvingPFhttp://www.getrichslowly.org/blog/2013/10/20/reader-stories-saved-one-years-salary-roth-ira-in-grad-school/comment-page-1/#comment-3465671
Emily @ evolvingPFTue, 22 Oct 2013 17:33:16 +0000http://www.getrichslowly.org/blog/?p=166243#comment-3465671Your coworker is spending almost 100% of her net pay on discretionary purchases and a car lease? Wow. At least if she ever wakes up she'll have you and your other coworker to go to for coaching! Great job on your savings!Your coworker is spending almost 100% of her net pay on discretionary purchases and a car lease? Wow. At least if she ever wakes up she’ll have you and your other coworker to go to for coaching! Great job on your savings!

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]]>By: Emily @ evolvingPFhttp://www.getrichslowly.org/blog/2013/10/20/reader-stories-saved-one-years-salary-roth-ira-in-grad-school/comment-page-1/#comment-3465669
Emily @ evolvingPFTue, 22 Oct 2013 17:30:50 +0000http://www.getrichslowly.org/blog/?p=166243#comment-3465669I ran across one woman at my university who got to her 4th year before finding out she was supposed to be paying income tax! I think most people figure it out in their first years just by talking with peers. At my university we're making a push to get all the fellowship students to set up withholding right when they set up their direct deposits so 1) they know they have to pay taxes and 2) they don't have to both with filing quarterly estimated taxes. It is very confusing for fellowship students who haven't had taxes withheld because they don't receive any official tax documents in advance of April 15, yet their income is (most likely) still taxable. I don't really know how the IRS eventually does catch up with fellowship students!I ran across one woman at my university who got to her 4th year before finding out she was supposed to be paying income tax! I think most people figure it out in their first years just by talking with peers. At my university we’re making a push to get all the fellowship students to set up withholding right when they set up their direct deposits so 1) they know they have to pay taxes and 2) they don’t have to both with filing quarterly estimated taxes. It is very confusing for fellowship students who haven’t had taxes withheld because they don’t receive any official tax documents in advance of April 15, yet their income is (most likely) still taxable. I don’t really know how the IRS eventually does catch up with fellowship students!

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]]>By: Aimeehttp://www.getrichslowly.org/blog/2013/10/20/reader-stories-saved-one-years-salary-roth-ira-in-grad-school/comment-page-1/#comment-3465521
AimeeTue, 22 Oct 2013 15:01:27 +0000http://www.getrichslowly.org/blog/?p=166243#comment-3465521When I was in grad school (graduated in May) I rarely left before 7pm -- and that was considered early! Cooking more frequently is one of the best things about being a real person with a real job. :-PWhen I was in grad school (graduated in May) I rarely left before 7pm — and that was considered early! Cooking more frequently is one of the best things about being a real person with a real job.

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]]>By: Ebiehttp://www.getrichslowly.org/blog/2013/10/20/reader-stories-saved-one-years-salary-roth-ira-in-grad-school/comment-page-1/#comment-3465473
EbieTue, 22 Oct 2013 14:27:12 +0000http://www.getrichslowly.org/blog/?p=166243#comment-3465473I recieved W2 income in years that I taught, or where I had gaps in fellowship coverage - I also tutored a little on the side occasionally. (This is of course technically against the rules in most graduate programs; we aren't really supposed to have "outside" employment...)
Thanks for telling your story, and sparking such interesting conversation! I've always found it so strange that the IRS and universities allow graduate students to fall into such a grey area in terms of income and taxes. In my program, about half my colleagues filed quarterly payments and reported 1099-MISC fellowship income - the rest didn't pay taxes at all, and I only know of two cases where it caught up to them!I recieved W2 income in years that I taught, or where I had gaps in fellowship coverage – I also tutored a little on the side occasionally. (This is of course technically against the rules in most graduate programs; we aren’t really supposed to have “outside” employment…)

Thanks for telling your story, and sparking such interesting conversation! I’ve always found it so strange that the IRS and universities allow graduate students to fall into such a grey area in terms of income and taxes. In my program, about half my colleagues filed quarterly payments and reported 1099-MISC fellowship income – the rest didn’t pay taxes at all, and I only know of two cases where it caught up to them!

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]]>By: ERhttp://www.getrichslowly.org/blog/2013/10/20/reader-stories-saved-one-years-salary-roth-ira-in-grad-school/comment-page-1/#comment-3464567
ERTue, 22 Oct 2013 03:42:02 +0000http://www.getrichslowly.org/blog/?p=166243#comment-3464567This is awesome to read! I'm 3 years post college and have just reached a (smaller but almost proportional) milestone in my own Roth on a similar yearly salary, it feels good man!
I work in a STEM lab with two grad students- one sounds very much like you and the other the complete opposite.
The one who has it together brings her lunch to work every day, has bought a small house and has roommates whose rent pays her mortgage and a little towards retirement.
The other lives with her parents, paying virtually no rent but buying starbucks daily and going shopping whenever she is bored and then wonders why she's always out of money by the end of the month. She also leases a car because she likes having a new one every few years.This is awesome to read! I’m 3 years post college and have just reached a (smaller but almost proportional) milestone in my own Roth on a similar yearly salary, it feels good man!

I work in a STEM lab with two grad students- one sounds very much like you and the other the complete opposite.

The one who has it together brings her lunch to work every day, has bought a small house and has roommates whose rent pays her mortgage and a little towards retirement.

The other lives with her parents, paying virtually no rent but buying starbucks daily and going shopping whenever she is bored and then wonders why she’s always out of money by the end of the month. She also leases a car because she likes having a new one every few years.

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]]>By: Emily @ evolvingPFhttp://www.getrichslowly.org/blog/2013/10/20/reader-stories-saved-one-years-salary-roth-ira-in-grad-school/comment-page-1/#comment-3464087
Emily @ evolvingPFMon, 21 Oct 2013 21:57:16 +0000http://www.getrichslowly.org/blog/?p=166243#comment-3464087Ugh, I am so annoyed by the whole 'earned income' distinction. I frequently rant about it on EPF. :)
As for contribution eligibility, it definitely helps to be married because you can do a spousal contribution! It's also very nice that the school year doesn't match up with the calendar year.
What kind of extra W-2 income have you had during grad school/postdoc?Ugh, I am so annoyed by the whole ‘earned income’ distinction. I frequently rant about it on EPF.

As for contribution eligibility, it definitely helps to be married because you can do a spousal contribution! It’s also very nice that the school year doesn’t match up with the calendar year.

What kind of extra W-2 income have you had during grad school/postdoc?

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]]>By: Emily @ evolvingPFhttp://www.getrichslowly.org/blog/2013/10/20/reader-stories-saved-one-years-salary-roth-ira-in-grad-school/comment-page-1/#comment-3463971
Emily @ evolvingPFMon, 21 Oct 2013 20:37:04 +0000http://www.getrichslowly.org/blog/?p=166243#comment-3463971Thanks so much for your encouragement!
The beauty of the percentage-based budget is that it's flexible for your income. :) We definitely plan to increase our lifestyle after we get our real jobs, though we don't want that to look like (mindless) lifestyle inflation. I want to increase our savings rate as well, although that will be split between long-term and medium-term goals - right now our only specific savings goals are for the long-term.Thanks so much for your encouragement!

The beauty of the percentage-based budget is that it’s flexible for your income. We definitely plan to increase our lifestyle after we get our real jobs, though we don’t want that to look like (mindless) lifestyle inflation. I want to increase our savings rate as well, although that will be split between long-term and medium-term goals – right now our only specific savings goals are for the long-term.

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]]>By: Emily @ evolvingPFhttp://www.getrichslowly.org/blog/2013/10/20/reader-stories-saved-one-years-salary-roth-ira-in-grad-school/comment-page-1/#comment-3463955
Emily @ evolvingPFMon, 21 Oct 2013 20:31:50 +0000http://www.getrichslowly.org/blog/?p=166243#comment-3463955Wow, you have done an amazing job! Let me know if you ever want to tell your story in a guest post on my blog.
We have more cash on hand than I would like, actually. We're overdue for a reallocation. Maybe we will be able to max out our Roth IRAs this year with a lump sum!Wow, you have done an amazing job! Let me know if you ever want to tell your story in a guest post on my blog.

We have more cash on hand than I would like, actually. We’re overdue for a reallocation. Maybe we will be able to max out our Roth IRAs this year with a lump sum!

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]]>By: Jeffhttp://www.getrichslowly.org/blog/2013/10/20/reader-stories-saved-one-years-salary-roth-ira-in-grad-school/comment-page-1/#comment-3463561
JeffMon, 21 Oct 2013 16:36:22 +0000http://www.getrichslowly.org/blog/?p=166243#comment-3463561You two have done an incredible job. Great work.You two have done an incredible job. Great work.

]]>By: MoneyAhoyhttp://www.getrichslowly.org/blog/2013/10/20/reader-stories-saved-one-years-salary-roth-ira-in-grad-school/comment-page-1/#comment-3463259
MoneyAhoyMon, 21 Oct 2013 11:21:14 +0000http://www.getrichslowly.org/blog/?p=166243#comment-3463259Wow! That's an amazing story! Terrific progress on reaching this milestone! I'm just starting my Roth IRA investment now, so I have a lot of catching up to do!!!Wow! That’s an amazing story! Terrific progress on reaching this milestone! I’m just starting my Roth IRA investment now, so I have a lot of catching up to do!!!

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]]>By: Elizabethhttp://www.getrichslowly.org/blog/2013/10/20/reader-stories-saved-one-years-salary-roth-ira-in-grad-school/comment-page-1/#comment-3463185
ElizabethMon, 21 Oct 2013 10:30:38 +0000http://www.getrichslowly.org/blog/?p=166243#comment-3463185Thanks for the response! I always wondered why Americans were so worried about maxing out their contributions each year.
I think our TFSAs (tax-free savings accounts) are probably the closest thing we have to Roth IRAs. Everyone over the age of 18 gets the same amount of contribution room each year (currently $5500) and the unused room carries over.Thanks for the response! I always wondered why Americans were so worried about maxing out their contributions each year.

I think our TFSAs (tax-free savings accounts) are probably the closest thing we have to Roth IRAs. Everyone over the age of 18 gets the same amount of contribution room each year (currently $5500) and the unused room carries over.

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Emily @ evolvingPFMon, 21 Oct 2013 03:01:11 +0000http://www.getrichslowly.org/blog/?p=166243#comment-3462673@ Susan
You know, we had some confusion over that Making Work Pay credit as well! My husband and I both claimed it; we were both rejected by the IRS; we both called to argue with them; he won and got the credit, I didn't. Our documentation was all the same for that year. It just convinced me that the IRS can be just as confused over this earned income issue as we are. (Well, I'm not so much confused as offended, as you can see in my Earned Income post.)
I'm glad to see you're saving for retirement as well! Great job!@ Susan

You know, we had some confusion over that Making Work Pay credit as well! My husband and I both claimed it; we were both rejected by the IRS; we both called to argue with them; he won and got the credit, I didn’t. Our documentation was all the same for that year. It just convinced me that the IRS can be just as confused over this earned income issue as we are. (Well, I’m not so much confused as offended, as you can see in my Earned Income post.)

I’m glad to see you’re saving for retirement as well! Great job!

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]]>By: Emily @ evolvingPFhttp://www.getrichslowly.org/blog/2013/10/20/reader-stories-saved-one-years-salary-roth-ira-in-grad-school/comment-page-1/#comment-3462663
Emily @ evolvingPFMon, 21 Oct 2013 02:55:08 +0000http://www.getrichslowly.org/blog/?p=166243#comment-3462663Oh right, I forgot about that! Yes, in the US you lose the contribution room for a given year if you don't contribute to an IRA by April 15 of the following year.Oh right, I forgot about that! Yes, in the US you lose the contribution room for a given year if you don’t contribute to an IRA by April 15 of the following year.

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]]>By: Susanhttp://www.getrichslowly.org/blog/2013/10/20/reader-stories-saved-one-years-salary-roth-ira-in-grad-school/comment-page-1/#comment-3462661
SusanMon, 21 Oct 2013 02:51:47 +0000http://www.getrichslowly.org/blog/?p=166243#comment-3462661I came to a similar conclusion as Tim. I did not receive a W-2 and unfortunately was unable to contribute to a Roth IRA while in grad school. I had already been contributing, and found out I shouldn't be contributing when I did my taxes with TurboTax. I decided to pay about a $60 penalty each year to keep the money in the Roth IRA and invest outside or retirement accounts until my husband and I finally had earned income.
I think this is certainly a tricky subject. I spoke with a financial advisor who said I was ineligible to contribute (but the government probably wouldn't notice if I did). Yet, one year we received an $800 making work pay credit from the government because they too didn't realize that my scholarship wasn't considered earned income - they both get reported on line 7 of a W-2. (I called them up and basically sent it back - they were pretty surprised, that never really happens ;) ).
All that aside I'd like to say congratulations on reaching the milestone of maxing out both your accounts and while in graduate school! Whatever the balance is I think the greatest accomplishment is making the choice to save early and the years of compounding that lay ahead!I came to a similar conclusion as Tim. I did not receive a W-2 and unfortunately was unable to contribute to a Roth IRA while in grad school. I had already been contributing, and found out I shouldn’t be contributing when I did my taxes with TurboTax. I decided to pay about a $60 penalty each year to keep the money in the Roth IRA and invest outside or retirement accounts until my husband and I finally had earned income.

I think this is certainly a tricky subject. I spoke with a financial advisor who said I was ineligible to contribute (but the government probably wouldn’t notice if I did). Yet, one year we received an $800 making work pay credit from the government because they too didn’t realize that my scholarship wasn’t considered earned income – they both get reported on line 7 of a W-2. (I called them up and basically sent it back – they were pretty surprised, that never really happens ).

All that aside I’d like to say congratulations on reaching the milestone of maxing out both your accounts and while in graduate school! Whatever the balance is I think the greatest accomplishment is making the choice to save early and the years of compounding that lay ahead!

]]>By: Tara @ Streets Ahead Livinghttp://www.getrichslowly.org/blog/2013/10/20/reader-stories-saved-one-years-salary-roth-ira-in-grad-school/comment-page-1/#comment-3462555
Tara @ Streets Ahead LivingMon, 21 Oct 2013 01:44:21 +0000http://www.getrichslowly.org/blog/?p=166243#comment-3462555Great job on reaching the milestone! Also I wanted to second your comment on living with roommates. Sometimes if you find the right place, living with roommates is cheaper than finding a one-bedroom to share with a significant other. If the rent is right and the roommates mesh well, it's best to do it on the cheap!Great job on reaching the milestone! Also I wanted to second your comment on living with roommates. Sometimes if you find the right place, living with roommates is cheaper than finding a one-bedroom to share with a significant other. If the rent is right and the roommates mesh well, it’s best to do it on the cheap!

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]]>By: Emily @ evolvingPFhttp://www.getrichslowly.org/blog/2013/10/20/reader-stories-saved-one-years-salary-roth-ira-in-grad-school/comment-page-1/#comment-3462475
Emily @ evolvingPFMon, 21 Oct 2013 00:40:41 +0000http://www.getrichslowly.org/blog/?p=166243#comment-3462475Oh, I'd wager most of the students I've polled are paid by NIH as well. But if they are increasing your pay to compensate for opting you in the taxes, I'd take that too. There are definitely advantages to paying payroll taxes earlier in life. Can you send me an email so we can talk about this further?Oh, I’d wager most of the students I’ve polled are paid by NIH as well. But if they are increasing your pay to compensate for opting you in the taxes, I’d take that too. There are definitely advantages to paying payroll taxes earlier in life. Can you send me an email so we can talk about this further?

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]]>By: Timhttp://www.getrichslowly.org/blog/2013/10/20/reader-stories-saved-one-years-salary-roth-ira-in-grad-school/comment-page-1/#comment-3462471
TimMon, 21 Oct 2013 00:30:10 +0000http://www.getrichslowly.org/blog/?p=166243#comment-3462471Unusual position in general, perhaps, but certainly not at my school (the NIH funds the overwhelming majority of labs at my institution). In fact, I'm not even losing out on money because when I switched funding sources, they increased my stipend so that my take-home would be the same after the increased taxes.Unusual position in general, perhaps, but certainly not at my school (the NIH funds the overwhelming majority of labs at my institution). In fact, I’m not even losing out on money because when I switched funding sources, they increased my stipend so that my take-home would be the same after the increased taxes.

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]]>By: Emily @ evolvingPFhttp://www.getrichslowly.org/blog/2013/10/20/reader-stories-saved-one-years-salary-roth-ira-in-grad-school/comment-page-1/#comment-3462461
Emily @ evolvingPFMon, 21 Oct 2013 00:23:13 +0000http://www.getrichslowly.org/blog/?p=166243#comment-3462461I disagree but I love your skepticism! I'll just say that I rarely come across grad students who pay payroll taxes - I have solicited this information on my blog and IRL - and those who do seem to be having them withheld because they are being paid as TAs (though not all TAs have them withheld). You are in an unusual position, which makes me think someone has made a mistake. So if I were you I would turn your research skills to figuring out why you DON'T have to pay payroll taxes and prove that to your payroll department, as that's in your better interest (IMO)!I disagree but I love your skepticism! I’ll just say that I rarely come across grad students who pay payroll taxes – I have solicited this information on my blog and IRL – and those who do seem to be having them withheld because they are being paid as TAs (though not all TAs have them withheld). You are in an unusual position, which makes me think someone has made a mistake. So if I were you I would turn your research skills to figuring out why you DON’T have to pay payroll taxes and prove that to your payroll department, as that’s in your better interest (IMO)!

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]]>By: Timhttp://www.getrichslowly.org/blog/2013/10/20/reader-stories-saved-one-years-salary-roth-ira-in-grad-school/comment-page-1/#comment-3462441
TimMon, 21 Oct 2013 00:01:22 +0000http://www.getrichslowly.org/blog/?p=166243#comment-3462441Also, lost in this thread is the impressiveness of saving a years salary inn Roth IRAs in grad school. Very nicely done; congratulations!Also, lost in this thread is the impressiveness of saving a years salary inn Roth IRAs in grad school. Very nicely done; congratulations!